The controller for Durham Skates is reviewing the production cost report for July. An analysis...
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Accounting
The controller for Durham Skates is reviewing the production cost report for July. An analysis of direct material costs reflects an unfavorable flexible budget variance of $25. The plant manager believes this is excellent performance on a flexible budget for 5,000 units of direct material. However, the production supervisor is not pleased with this result as he claims to have saved $1,200 in material cost on actual production using the 4,900 units of the direct materials purchased for the month. The standard material cost is $12 per unit. Actual material used for the month amounted to $60,025.
The actual average cost per unit for materials was:
A. $12.00
B. $12.01
C. $12.24
D. $12.25
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